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Work · Your first weeks on the job

Reading your pay stub

Gross pay is what you earned. Net pay is what lands in your account after taxes and deductions. Check your hours, your rate and each deduction every payday.

Easy10 min to doFreeChecked October 2, 2026

Do it like this

How a pay stub adds upA pay stub laid out top to bottom. Gross pay, minus federal income tax withholding set by your W-4, minus Social Security at 6.2% of wages, minus Medicare at 1.45%, minus any state and local tax, minus other deductions like health insurance and retirement, equals net pay, your take-home pay, which is highlighted.Pay stubPay period and hours: check themGross payWhat you earned before anything comes out− Federal income taxSet by your W-4− Social Security6.2% of wages− Medicare1.45% of wages− State and local taxIf your state has one− Other deductionsHealth insurance, retirement= Net payTake-home pay. Should match your deposit
Gross pay minus taxes and deductions equals what lands in your account.
  1. Check the pay period, your hours and your rate. Mistakes happen, and you're the one who'll notice.
  2. Find gross pay: everything you earned before deductions.
  3. Find the taxes. Federal income tax withholding comes from your W-4. Social Security is 6.2% and Medicare is 1.45% of your wages for the employee share. Source: IRS You may also see state and local taxes.
  4. Find other deductions, like health insurance or retirement contributions. Source: consumer.gov
  5. Find net pay, your take-home pay, and make sure it matches what hit your bank account.
Watch out If your hours or pay are wrong, tell payroll right away and keep a copy of the stub. It's much easier to fix the same week.

See it done

Anatomy of a paycheck Khan Academy · Length 5:40 · 2023

Video blocked on this network? You don't need it. The written steps are the whole lesson, and the video is extra. Watch it on YouTube later.

If it doesn't work

  • If payroll doesn't fix a wage error, put your request in writing and keep copies of your stubs and your own record of hours.
  • If you're paid less than minimum wage or not paid overtime you're owed, the U.S. Department of Labor's Wage and Hour Division enforces those rules. Source: U.S. Department of Labor
  • If federal tax withholding looks too high or too low, update your W-4. See Filling out a W-4.

Good to know

Keep them a year

Consumer.gov suggests keeping pay stubs for a year. Once your W-2 matches, you can shred that year's stubs. Source: consumer.gov

Why less comes home

The law requires employers to withhold for federal and state taxes and for Social Security and Medicare (FICA). Source: consumer.gov

Direct deposit

With direct deposit, you get your money right away and don't pay check-cashing fees. Source: consumer.gov

Sources

  1. Internal Revenue Service Topic no. 751, Social Security and Medicare withholding rates
  2. Federal Trade Commission Your paycheck explained (consumer.gov)
  3. U.S. Department of Labor Fair Labor Standards Act

Lesson W4.2 · Last checked October 2, 2026 against the sources listed.

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